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What is Article 303 of indian constitution

 

🧾 Article 303 of the Indian Constitution

Title: Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce


🔍 Explanation:

Article 303 is a safeguard against discrimination in the field of inter-state trade and commerce.
It prohibits both the Parliament and State Legislatures from making discriminatory laws that favor one state over another in matters of:

  • Trade

  • Commerce

  • Intercourse (movement of goods or people)


📘 Text of Article 303:

Clause (1):

"Neither Parliament nor the Legislature of a State shall have power to make any law giving preference to one State over another, or making any discrimination between one State and another."

✅ This means:

  • No law can be passed that favors one State's economy over another.

  • Prevents regional economic imbalance caused by biased legislation.

Clause (2):

Exception: Parliament may make discriminatory laws only if it is necessary to deal with a scarcity of goods in any part of India.

✅ This allows temporary exceptions for:

  • Managing crisis situations (e.g., natural disasters, food shortages)

  • Ensuring equitable distribution of scarce resources


📊 Summary Chart: Article 303

Feature Details
Article 303
Applies To Parliament & State Legislatures
Prohibited Action - No preference to one State over another - No discrimination in trade laws
Exception Allowed? ✅ Yes, but only Parliament and only during scarcity of goods
Purpose To maintain economic equality and national integration
Related Articles Linked to Article 301 (freedom of trade) and Article 302 (restrictions allowed)

⚖️ Example:

  • Invalid Law: A law that gives tax benefits only to factories in Maharashtra and excludes other states → ❌ Violates Article 303(1)

  • Valid Exception: Parliament restricts onion exports from all states except Rajasthan, where there's a severe shortage → ✅ Allowed under Article 303(2)


🧠 Why Article 303 Is Important:

  • Prevents favoritism or regional bias in national trade policies.

  • Promotes equal opportunity and fair competition among states.

  • Ensures uniform economic growth across India.


Here is a clear and exam-focused 📊 Comparison Chart of Articles 301, 302, and 303 of the Indian Constitution, which together regulate trade, commerce, and restrictions across India:


📘 Chart: Articles 301 to 303 – Trade, Freedom & Restrictions

Article Title Main Focus Who Has the Power? Restrictions / Exceptions
301 Freedom of Trade, Commerce & Intercourse Guarantees free movement of goods and people across India Subject to Articles 302–305
302 Power of Parliament to Impose Restrictions Parliament can restrict freedom of trade in public interest Parliament of India Restrictions must be reasonable and for public interest
303(1) No Discrimination Between States No law can give preference to one State over another Parliament & State Legislatures Absolute prohibition (unless exception applies)
303(2) Exception to Article 303 Parliament may discriminate in case of scarcity of goods Parliament only Must be justified by emergency or scarcity situation

🧠 Quick Summary:

  • Article 301 → Gives freedom

  • Article 302 → Parliament can limit freedom in public interest

  • Article 303 → No favoritism to any State

    • Exception: Parliament may allow temporary discrimination to address scarcity


🧾 Example:

Scenario Applicable Article Valid?
Goods freely moving from Delhi to Kerala 301 ✅ Yes
Parliament bans sale of firecrackers across India 302 ✅ Yes (public interest)
State law gives subsidies only to industries in its capital 303 ❌ No (discriminatory)
Parliament favors one State during flood due to food crisis 303(2) ✅ Yes (exception allowed)